UK still in recession

COVENTRY: The British Chambers of Commerce warned that the economy is still 'frail'. Its latest quarterly survey casts doubt on whether the UK emerged from recession between July and September.

Although confidence among manufacturers and services companies is at its highest since the start of 2008, before the recession began, several indicators remain negative.

David Kern, the BCC's chief economist, said: "The third-quarter results support our assessment that the UK economy is on the brink of leaving recession.

"However, the improvement is not sufficiently strong to allow us to conclude without doubt that GDP has already returned to positive growth. The economy is still frail."

Official estimates are due next week on the performance of the economy in the third quarter of this year. If the economy remains in the doldrums, it will be the first time the UK has endured six successive quarters without growth.

This data also supports the view by some city analysts that house price rises in the past five months are unlikely to be sustained.

The BCC predicts a 4.3% slide for the economy this year and anaemic 1.1% growth in 2010 as a weak recovery gets under way.

The group is calling on the government to help businesses by reversing moves such as the 0.5% hike in national insurance contributions from 2011.

Related Articles

Builders’ merchant Jewson has opened a new 22,000 sq ft branch in Northampton. The branch, located on the Kings Heath Industrial Estate, forms part of a new Trade Park, and is located alongside outlets of Jewson sister companies Graham, The Plumbers’ Merchant, and tile supplier, CTD.

BSRIA has applauded the announcement of the government commission into a major review of the construction labour market in its latest bid to reform the sector and enable it to help power economic growth and solve the current housing crisis.

Following a company restructure, ATAG Commercial has relocated to new UK headquarters in Basildon, Essex. The move follows the acquisition of ATAG by the Ariston Thermo Group, which already bases a number of its UK companies from the same south Essex offices.

MKM Building Supplies has opened a new luxury kitchen and bathroom showroom in Grimsby. The Hull-based company has invested £50,000 to create an inspirational showroom at its branch on Eleanor Street in the town.

Following the launch of the London Boiler Cashback Scheme, Worcester, Bosch Group has pledged an additional £100 cashback to the successful recipients of the incentive’s £400 allowance when they elect to replace their inefficient boiler with one of its high-efficiency Greenstar models.